German health reform row splits coalition; government could fall

There is widespread agreement among German political commentators that the continuing and intensifying controversy over coalition health reform plans could bring down the government under Chancellor Angela Merkel.

The Christian Democrats (CDU) appear to have lost their enthusiasm for the reforms agreed with the Social Democrats (SPD) and greeted as recently as July this year as a "real breakthrough" by the Chancellor. Volker Kauder, head of the CDU in parliament, says that his party is committed to the program but other party activists want to make radical changes. Recriminations have already begun between CDU and SPD politicians.

The main focus of the row is the so-called "One Percent Rule," under which all health fund patients would pay a maximum of 1% of their household income to top up additional premium payments needed by the individual funds. CDU sources have said that, although this has been agreed by the coalition, experts are pointing to its impracticability.